Over the past 30 years, remittances to Vietnam have been steadily increasing. Statistics show that the total amount of remittances transferred domestically over the past 3 decades has reached about USD 230 billion, equivalent to the amount of foreign direct investment disbursed during this period.

In 2023, inward remittances to Vietnam are estimated to reach about USD 16 billion, of which to Ho Chi Minh City alone at about USD 9.46 billion, an increase of 43.3% compared to 2022 - 3 times higher than foreign investment capital.

In the first 6 months of 2024, remittances to Ho Chi Minh City reached USD 5.17 billion, equivalent to 54.7% of whole year of 2023 and an increase of 19.5% over the same period. In Hanoi, in the first 6 months of the year, inward remittances are estimated to reach USD 30 million. In July 2024 alone, inward remittances reached USD 10 million.

According to Dr. Nguyen Tri Hieu - a banking and finance expert, although only accounting for about 5% of the Vietnamese population and people of Vietnamese origin worldwide, overseas Vietnamese are a force that makes a significant financial contribution to the development of Vietnam.

Over the years, inward remittances into Vietnam have created a very important source of foreign currency for banks. At the same time, the amount of remittances also helps reduce pressure, balance capital sources for foreign currency loans, especially at the end of the year, contributing to stabilizing the exchange rate.

In addition, remittances also contribute to socio-economic development and improve the effectiveness of monetary policy management of the State Bank. Remittances not only help increase the income of recipients, but also play an important role in promoting economic growth.

In particular, according to Associate Professor Dr. Dinh Trong Thinh - economic expert, the recent strong growth in remittances shows the confidence of overseas Vietnamese in the stable macroeconomic situation, favorable investment and business environment in the country, and the mechanisms and policies of the Government and the State Bank of Vietnam in attracting remittances.

In recent years, to attract and facilitate the increase of remittances to Vietnam, banks such as Agribank and remittance companies have developed financial services to facilitate international trade and money transfers.

According to Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City Branch, from now until the end of the year, the amount of remittances to Vietnam is predicted to increase sharply. Therefore, solutions to attract remittances as well as effectively use remittances need to be considered and implemented in the upcoming period, such as continuing to well implement foreign exchange policies and mechanisms, and attracting remittances; improving the investment environment and enhancing the quality of remittance payment services.

Kylie Nguyen